Welcome to the Republic of Indonesia The Land of Smiles... Presenting Palembang City Missions 1. To recognize and promote the great natural beauty and

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1 INDONESIA TOURISM INVESTMENT INVITATION An Invitation to Invest in Tourism Development in Palembang City, South Sumatera Province, Republic of Indonesia

2 Welcome to the Republic of Indonesia The Land of Smiles... Presenting Palembang City Missions 1. To recognize and promote the great natural beauty and social diversity of Palembang City as tourist destinations; 2. To inform foreign and domestic investors, developers, operators, and visitors about the tourism development potentials in Palembang City; 3. To provide guidance for investors on the comprehensive investment services offered by the Ministry s partners, including the Indonesia Investment Coordinating Board. P a g e 1 16

3 LOCATION ABOUT PALEMBANG CITY Republic of Indonesia South Sumatera Province Palembang City P a g e 2 16

4 PALEMBANG CITY GEOGRAPHY Time Zone Coordinate Area Borders Air Temperature Relative Humidity UTC S E ± km2 North Banyuasin Regency West Banyuasin Regency South Muara Enim and Ogan IlirProvince East Banyuasin Regency 26 C 28,7 C % Population Density Labour Force Ethnic Group Religion DEMOGRAPHICS Language Peoples/km² Javanese, Malay and Chinese Islam, Christianity, Buddhism, Catholic, Hinduism and Konghucu Indonesian (official), Malay language (local) BUSINESS ENVIRONMENT In 2014 the manufacturing industry sector dominates the economy of Palembang City, the contribution to the total GDP was amounted to 27.23%; followed by trade, hotel & restaurant with a contribution of 21.3%, the building sector is in third place with 18.87%; then followed by the services sector 12.53%; building 10%; finance, leasing and corporate services 8.18 %; mining and quarrying 2% and processing industry 1%. INFRASTRUCTURE Transportation The transportation system in Palembang City consists of road transport. Land transportation infrastructure supported by the network of national, provincial and regency levels. Overall, the existing transportation infrastructure has reached almost all parts of Palembang City. P a g e 3 16

5 Telecommunication Communication technologies in Palembang City has been well implemented and have covered the entire province. Telex and facsimile are already applied to all of area in Palembang City, especially for activities of government and entrepreneurs. Telecommunication infrastructures are easy to get even in the urban and rural area. Energy In terms of electricity, Palembang City has shown a significance improvement. It can be seen from the increasing number of electricity production by State Electricity Company (PLN) until now. Overall, the improvement of energy has shown a great promise of regional development, especially in rural and remote areas. Water Most areas of Palembang City are flowed by rivers. The existence of the rivers are supporting the residence needs for water supply. Aside from these rivers, the hydrological situation in Palembang City is also determined by the presence of swamps, lakes, dams, reservoirs, springs and boreholes. P a g e 4 16

6 TOURISM FACTS ATTRACTION Palembang City has a number of attractive tourism destinations. Ranging from natural tourist attraction, nature based tourist attraction and historical tourist attraction. Natural 1. Musi River Musi River is the longest river in Sumatra with a length of 750 km. Musi River divides the city into two parts and was once the main means of transportation in Palembang. On the banks of the Musi River there are several attractions, including a floating restaurant, Arab villages, and Kuto Besak. Musi River is also the right place for a culinary tour in Palembang. 2. Puti Kayu Tourism Forest Punti Kayu Tourism Forest is located about 6 miles from the city centre with an area of 50 ha and since 1998 ot was designated as protected forests. In this forest there a group of monkeys long-tail macaque (Macaca fascicularis) and monkey (Macaca nemistriana) under the Sumatran Pine wood. Historical Tourist Atraction 1. Ampera Bridge Ampera Bridge has become an icon and a symbol of Palembang. Was built in 1962, the bridge was completed in 3 years. Ampera Bridge connecting door Ulu and Ilir are separated by the Musi River. About 50 meters from the Ampera Bridge, there is a market which is the center of souvenir and food so that tourist can easily buy souvenirs. 2. Kemaro Island Kemaro Island is located in the middle of the Musi River, about 6 KM from Ampera Bridge. Currently Kemaro Island is one of famous tourist attractions in Palembang. On the island there is a monastery Kemaro which is visited by Buddhists to pray and pilgrimages. There are also some interesting things in Kemaro Island, such as 9- storey pagoda built in 2006, and the tree of love. Local people believe that if lovers P a g e 5 16

7 carved his name in the tree of love, the love affair they will continue up to the wedding. 3. Sriwijaya Kingdom Archaeological Park The remnant of Sriwijaya site is located on the banks of the Musi River. There is an inscription and stone relics, complex of ancient pond, artificial island and canals dated from the Sriwijaya kingdom in this area. The Sriwijaya Museum is also located in this complex. ACCESSIBILITIES Palembang City is relatively easy to reach by both domestic and international tourist. The main entry is through Sultan Mahmud Badaruddin II International Airport in Palembang City. From the Sultan Mahmud Badaruddin II International Airport, tourist can reach Palembang City via land transportation, which takes around 15 minutes to the city central. P a g e 6 16

8 REGIONAL TOURISM POLICY TOURISM IN REGIONAL DEVELOPMENT Tourism has become one of the main priority sector for development by the local government. The government and the community have fully aware of the Palembang City tourism resources and its potential for economic contribution through tourism development. They are welcoming investors that are willing to cooperate not only on developing more tourism attraction and facilities but also to develop in all of tourism aspects of Palembang City. REGIONAL TOURISM DEVELOPMENT FRAMEWORK The tourism development at the Palembang City must be implemented in compliance with the following principles 1. Community based tourism Maintain the involvement of the local community and stakeholders in every tourism development activity 2. Sustainable tourism Continuous improvement and preservation of the environmental, cultural and communal aspects of tourism development 3. Cultural preservation Implement and integrate local culture elements in all tourism development activities 4. Collaborative partnership between stakeholders Cooperate and accommodate all stakeholder s aspirations P a g e 7 16

9 INVESTMENT OPPORTUNITIES KEMARO ISLAND P a g e 8 16

10 1. Located at Kali Doni Sub-District, Palembang City, South Sumatera Province. 2. Coordinate S 02 58'54.96" E104 49'26.42" 4. Owner Local Government 3. Area ± 25 Hectare (land) 5. Tourism Business Opportunities (including the investment code of the Standard Classification of Indonesian Business Fields for Tourism) a. 1 unit of Two Star Hotel (5511) with 70 rooms. Estimated required initial funds IDR 24 Billion (Excluding land lease, license and permit fees) b. 1 unit of Three Star Hotel (5511) with 80 rooms. Estimated required initial funds IDR 44 Billion (Excluding land lease, license and permit fees) c. 2 units of Restaurant (56101) Estimated required initial funds IDR 5 Billion (Excluding land lease, license and permit fees) d. 2 units of Café (56303) Estimated required initial funds IDR 2.5 Billion (Excluding land lease, license and permit fees) 6. Available cooperation The Investors are encouraged to invest in partnership with the Local Government through the following cooperation a. Build, Operate and Transfer (BOT) b. Joint Venture c. Other agreeable cooperation forms P a g e 9 16

11 OGAN PERMATA INDAH (OPI) LAKE P a g e 10 16

12 1. Located at South Palembang City, South Sumatera Province. 2. Coordinate S 03 02'54.11" E104 47'11.61" 4. Owner Local Government 3. Area ± 11,8 Hectare 5. Tourism Business Opportunities (including the investment code of the Standard Classification of Indonesian Business Fields for Tourism) a. 1 unit of Two Star Hotel (5511) with 70 rooms. Estimated required initial funds IDR 24 Billion (Excluding land lease, license and permit fees) b. 1 unit of Three Star Hotel (5511) with 80 rooms. Estimated required initial funds IDR 44 Billion (Excluding land lease, license and permit fees) c. 2 units of Restaurant (56101) Estimated required initial funds IDR 5 Billion (Excluding land lease, license and permit fees) d. 2 units of Café (56303) Estimated required initial funds IDR 2.5 Billion (Excluding land lease, license and permit fees) 6. Available cooperation The Investors are encouraged to invest in partnership with the Local Government through the following cooperation a. Build, Operate and Transfer (BOT) b. Joint Venture c. Other agreeable cooperation forms P a g e 11 16

13 SRIWIJAYA KINGDOM ARCHEOGICAL PARK P a g e 12 16

14 1. Located at Palembang City, South Sumatera Province. 2. Coordinate S 03 00'50.55" E104 44'02.73" 4. Owner Local Government 3. Area ± 20 Hectare 5. Tourism Business Opportunities (including the investment code of the Standard Classification of Indonesian Business Fields for Tourism) Management of historical and archaeological heritage in form of Temple, Palace, Ancient Inscription, Petilasan and Ancient Buildings (91024) 6. Available cooperation The Investors are encouraged to invest in partnership with the Local Government through the following cooperation a. Build, Operate and Transfer (BOT) b. Joint Venture c. Other agreeable cooperation forms P a g e 13 16

15 INVESTMENT OPPORTUNITIES SUMMARY Total Required Fund Amount Required Funds Per Needed Business Field Two Star Hotel 2 IDR 24 Billion IDR 48 Billion Restaurant 4 IDR 5 Billion IDR 20 Billion Business Fields Three Star Hotel Cafe 2 4 IDR 44 Billion IDR 2.5 Billion Total Required Fund in the Region (Excluding Land Per Business Field Category IDR 88 Billion IDR 10 Billion IDR 166 Billion Lease, License and Permit) P a g e 14 16

16 Welcome to Palembang City Tourism Zone... Deputy for Tourism Destination and Industry Development Ministry of Tourism, Republic of Indonesia Sapta Pesona Building, 4th Floor, Medan Merdeka Barat Street No. 17 Central Jakarta, Contact us Phone +62(0) Website P a g e 15 16